Mahindra Holidays & Resorts India Limited · NSE:MHRIL

Mahindra Holidays & Resorts India — Q3 FY20 Earnings Presentation

72 slides from Mahindra Holidays & Resorts India's earnings presentation, Feb 1, 2020

  1. Slide 1: ClubMahindra exchange filing cover letter

    ClubMahindra February 1, 2020 MHRIL/SE/ 2019-20/ Listing Compliance Department of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block Floor 25, PJ Towers, Bandra-Kurla Complex Dalai Street Bandra (E), Mumbai - 400 051 Mumbai — 400 001 Scrip C

  2. Slide 2: Mahindra Holidays & Resorts India Limited Q3 FY20 Investor Presentation

    Mahindra Holidays & Resorts India Limited Q3 FY20 Investor Presentation 1st February 2020

  3. Slide 3: Disclaimer

    Disclaimer This presentation may contain ‘forward looking statements’ within the meaning of applicable laws and regulations. Investors are cautioned that ‘forward looking statements’ are based on certain assumptions, which Mahindra Holidays & Resorts India Limited considers reasonable at this time a

  4. Slide 4: Contents

    Contents Unique Leadership Impact of Q3 FY20 Business Model Position in Transition to Results Vacation IND AS 115 & Update Ownership 116 3

  5. Slide 5: Business Model

    Business Model Club Mahindra (CMH 25) Flagship Product Offering Target Profile of CMH 25 Member Product Portfolio Strategic Priorities Strengthen & Leverage Grow Member Base Brand Bliss for CMH 25 Create Marquee resorts in 50+ year unexplored destinations Member Engagement Age group Drive Operationa

  6. Slide 6: Sales Network and Revenue & Cost Model

    Sales Network and Revenue & Cost Model Sales Network Cost Model • 124 branch offices, sales offices & channel partners • ASF funds maintenance, renovation of resorts & member servicing • Leads generated through Digital route, Referrals, Alliances, On-ground Events/Activities, Campaigns Revenue Model

  7. Slide 7: Unique Business Model

    Unique Business Model 6

  8. Slide 8: Unique Business Model Status

    Unique Business Model Zero Debt Status Unique Consistently High Strong Balance Sheet Business Occupancy Model 7

  9. Slide 9: Unique Business Model - Strong Balance Sheet

    Unique Business Model - Strong Balance Sheet Deferred Strong Cash Receivables Strong Asset Revenue Position Base Rs. 5,476 Cr Rs. 694 Cr Rs. 1,699 Cr Rs. 1,840 Cr* Income which Organic Growth Opportunity for 65 Resorts will be can be met Inorganic Includes Land recognized over without relying growth

  10. Slide 10: Unique Business Model - Consistently High Occupancy

    Unique Business Model - Consistently High Occupancy 4,000 95% 85% 85% 83% 83% 82% 3,700 81% 3,595 3,652 3,472 75% 3,400 3,152 55% 3,100 2,816 2,879 35% 2,800 2,500 15% FY15 FY16 FY17 FY18 FY19 YTD FY20 Room Inventory (Units) Occupancy % 9

  11. Slide 11: Leadership Position in Vacation Ownership

    Leadership Position in Vacation Ownership 10

  12. Slide 12: Leadership Position in Vacation Ownership

    Leadership Position in Vacation Ownership Choice of 2.54 Lakh+ Member 57 Domestic resorts base Trusted Brand & 51 International Track record of over resorts two decades Through our Inventory Significant Recurring exchange program 178 Member Income Partners Hotels across Engagement streams/Revenue 95

  13. Slide 13: Resort Diversity

    Resort Diversity Hill Stations Beaches Cities  Manali, Shimla, Naldhera, Kandaghat,  Varca, Emerald Palms, Acacia Palms -  Cochin Rishikesh Goa  Nadiad  Dharamshala, Kanatal, Binsar  Cherai  Dubai  Pondicherry  Kuala Lumpur  Mussorie, Naukuchiatal, Srinagar  Ganpatipule  Singapore  Munn

  14. Slide 14: Member Engagement

    Member Engagement Dreamscapes Heart-to-Heart Curated Vacations Exchange Program • Wide variety of in-city • Festivals & theme-based • Creating choice of • In-city meets include experiences especially vacation experiences for destinations for members for leisure & edutainment curated for members memb

  15. Slide 15: Transition to IND AS 115 & 116

    Transition to IND AS 115 & 116 14

  16. Slide 16: Transition to IND AS 115 – Impact on Revenue & Cost

    Transition to IND AS 115 – Impact on Revenue & Cost Ind AS VO Income Ind AS VO Income 18 115 60% non refundable admission fee Recognized over the tenure of recognized upfront, 40% of Entitlement Fee membership deferred over tenure of membership Ind AS Ind AS Cost 115 Cost 18 Direct Costs are charged

  17. Slide 17: Transition to IND AS 115 – Key Takeaways

    Transition to IND AS 115 – Key Takeaways  Income recognized equally over the tenure of membership (4% per year for 25 year product) as against 60% upfront in AS 18  Only incremental costs to obtain the membership are amortized over the tenure of membership  Unit economics remains the same over th

  18. Slide 18: Transition to IND AS 116 – Key Takeaways

    Transition to IND AS 116 – Key Takeaways • The Ministry of Corporate Affairs (MCA) vide notification dated March 30, 2019 has made Ind-AS 116 "Leases" (Ind-AS 116) applicable w.e.f. April 1, 2019. • The Company has applied the modified retrospective approach as per para C5(b) of Ind-AS 116 to existi

  19. Slide 19: Operating Performance

  20. Slide 20: Q3 FY20 Performance

    Q3 FY20 Performance Membership Total Base Income Member Addition Total Income Margin Occupancy 3,805 Levels Rs. 267 Cr Occupancy PBT Margin 8.2% 83.9% YOY growth 14.5% 195 bps 104 bps YOY growth YOY growth 19

  21. Slide 21: YTD Dec'19 Performance

    YTD Dec’19 Performance Membership Total Base Income Member Addition Total Income Margin Occupancy 12,081 Levels Rs. 782 Cr PBT Margin Occupancy 9.9% 83.1% YOY growth 12.1% 50 bps 126 bps YOY growth YOY growth 20

  22. Slide 22: Cumulative Member Base

    Cumulative Member Base 2,54,988 * 2,47,716 2,29,643 2,11,997 1,94,738 1,78,483 Q3 FY15 Q3 FY16 Q3 FY17 Q3 FY18 Q3 FY19 Q3 FY20 * Net of one-off cancellation of 9,556 overdue members, in Q4 FY19. 21

  23. Slide 23: Resort Occupancy %

    Resort Occupancy % 91.0% 89.4% 83.9% 81.9% 76.0% * 74.4% Q1 Q2 Q3 FY 18-19 FY 19-20 *Low Occupancy due to unprecedented rains/floods in Kerala & Coorg, Himachal Pradesh, Uttarakhand and Maharashtra. 22

  24. Slide 24: Occupancy Trend

    Occupancy Trend Occupancy Trend 84% 85% 85% 84% 81% 82% Q3 FY15 Q3 FY16 Q3 FY17 Q3 FY18 Q3 FY19 Q3 FY20 23

  25. Slide 25: New Resorts Added

    New Resorts Added Swissotel, Phuket Summit, Rishikesh Bundela, Khajuraho Bundela, Bhandhavgarh Woraburi, Pattaya 24

  26. Slide 26: Our growing International presence

    Our growing International presence 51 destinations & growing…. UAE & Asia – 9 destinations Europe & US – 42 destinations •Bangkok -1 •Finland - 25 •Kuala Lumpur -1 •Sweden – 2 •Singapore -1 •Spain - 6 •Srilanka -1 •Orlando – 7 •Dubai - 1 • Las Vegas - 2 •Bhutan – 2 •Phuket – 1 •Pattaya - 1 25

  27. Slide 27: Member Engagement

  28. Slide 28: Theme Activities at Resorts

    Theme Activities at Resorts Ocean Theme at Village Theme at Emerald Palms Varca Grand Mela theme Street food theme Monsoon Camp at all at Shimla at Kandaghat Resorts 27

  29. Slide 29: #MeetTheRealSanta IN FINLAND

    #MeetTheRealSanta IN FINLAND Photo - ops Give-aways Letter to Santa 28

  30. Slide 30: #MeetTheRealSanta IN FINLAND

    #MeetTheRealSanta IN FINLAND In association with Ruskin Bond to bring Engaging kids with AR colouring sheets and writing to Santa. alive tales of the real Santa Claus. 29

  31. Slide 31: Historical Financial Performance Ind AS 18

  32. Slide 32: Income Trend

    Income Trend IND AS 18 VO Income Resort Income Rs. Crs +6% Rs. Crs +14% 583 209 220 539 545 557 190 173 444 132 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 ASF Income Interest & Others Rs. Crs Rs. Crs +11% +14% 109 240 89 93 210 217 173 64 67 156 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY

  33. Slide 33: Performance Trend

    Performance Trend IND AS 18 Total Income EBITDA Margin PBT Margin Rs. Crs 21% +10% 1170 25% 25% 1090 1094 24% 24% 24% 19% 964 18% 808 17% 16% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 32

  34. Slide 34: Profits

    Profits IND AS 18 Rs. Crs PBT Rs. Crs PAT 156 241 +19% +23% 131 134 201 207 114 168 79 105 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 33

  35. Slide 35: Cash from Operations continue to grow

    Cash from Operations continue to grow Rs Crs 400 350 332 301 300 266 Rs. 1,015 Crs 250 200 Cumulative operating Cash since FY16 150 116 100 50 0 FY16 FY17 FY18 FY19 34

  36. Slide 36: Strong Balance Sheet Position

    Strong Balance Sheet Position Rs Crs 3,986 1,129 Land Assets Revalued 2,752 during Sep’18 & stands 2,539 2,251 161 167 664 at Rs. 1,129 Cr as on 1,865 157 717 682 Mar’19 107 745 666 1,621 Cash growing at a 1,396 1,434 healthy rate 1,265 1,066 470 572 26 26 84 265 2015 2016 2017 2018 FY19 Ind AS 18 I

  37. Slide 37: Financial Performance – IND AS 116 Q3 FY20

  38. Slide 38: Q3 FY'20 Income Trend

    Q3 FY’20 Income Trend VO Income Resort Income Rs. Crs Rs. Crs 85 66 +11% +14% 77 58 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 ASF Income Interest & Others Rs. Crs Rs. Crs 75 +11% 45 -9% 67 41 Q3 FY19 Q3 FY20 37 Q3 FY19 Q3 FY20

  39. Slide 39: Q3 FY'20 Performance Trend

    Q3 FY’20 Performance Trend Total Income EBITDA Margin* PBT Margin* Rs. Crs 14.5% 26.3% 13.4% 267 +8% 247 18.7% Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 *FY20 numbers are post IND AS 116 impact 38

  40. Slide 40: Q3 FY'20 Profit Growth

    Q3 FY’20 Profit Growth Rs. Crs PBT* Rs. Crs PAT* 39 +17% 33 25 +17% 21 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 *FY20 numbers are post IND AS 116 impact 39

  41. Slide 41: Income Break Up – Q3 FY'20

    Income Break Up – Q3 FY’20 Rs. In Lakhs Growth Total Income Q3 FY20 Q3 FY19 YoY Income from Vacation Ownership 8,546 7,680 11.3% ASF 7,469 6,703 11.4% Resort Income 6,646 5,838 13.8% Room 1,497 1,220 22.7% F&B 3,988 3,583 11.3% Holiday Activity & Others 1,161 1,035 12.2% Interest & Others 2,563 3,38

  42. Slide 42: Impact of Ind AS 116 – Standalone Q3 FY'20

    Impact of Ind AS 116 – Standalone Q3 FY’20 (Rs. in lakhs) Standalone (Unaudited) Quarter ended Quarter ended December 31, 2019 December Sl. No Particulars 31,2018 Amount without Amount without Impact of As reported adoption of Ind adoption of Ind Ind AS 116 AS 116 AS 116 1. Profit prior to Rent, Fin

  43. Slide 43: Profit & Loss Statement – Q3 FY'20

    Profit & Loss Statement – Q3 FY’20 Rs. In Lakhs As reported Without impact of IND AS 116 Particulars Q3 FY20 * Q3 FY19 YoY Gr Q3 FY20 Q3 FY19 YoY Gr Revenue from Operations 25,224 23,606 6.9% 25,224 23,606 6.9% Non-Operating Income 1,492 1,081 38.0% 1,492 1,081 38.0% Total Income 26,716 24,687 8.2%

  44. Slide 44: Financial Performance – IND AS 116 YTD Dec 2019

  45. Slide 45: YTD Dec'19 Income Trend

    YTD Dec’19 Income Trend VO Income Resort Income Rs. In Crs 258 +12% Rs. In Crs 230 179 +9% 165 YTD Q3 FY19 YTD Q3 FY20 YTD Q3 FY19 YTD Q3 FY20 ASF Income Interest & Others Rs. In Crs Rs. In Crs 216 129 +12% 4% 124 192 YTD Q3 FY19 YTD Q3 FY20 YTD Q3 FY19 YTD Q3 FY20 44

  46. Slide 46: YTD Dec'19 Income Trend

    YTD Dec’19 Income Trend Total Income EBITDA Margin* PBT Margin* Rs. In Crs 782 23.4% +10% 711 16.4% 12.1% 10.9% YTD Q3 FY19 YTD Q3 FY20 YTD Q3 FY19 YTD Q3 FY20 YTD Q3 FY19 YTD Q3 FY20 *FY’19 figures a per Ind AS 115 & FY’20 as per Ind AS 115 & 116 45

  47. Slide 47: YTD Dec'19 Profit Growth

    YTD Dec’19 Profit Growth Rs. In Crs PBT* Rs. In Crs PAT* 95 +23% 61 77 +23% 49 YTD Q3 FY19 YTD Q3 FY20 YTD Q3 FY19 YTD Q3 FY20 *FY’19 figures a per Ind AS 115 & FY’20 as per Ind AS 115 & 116 46

  48. Slide 48: Income Break Up – YTD Dec'19

    Income Break Up – YTD Dec’19 Rs. In Lakhs Growth Total Income YTD Dec’19 YTD Dec’18 YoY Income from Vacation Ownership 25,794 23,038 12.0% ASF 21,575 19,231 12.2% Resort Income 17,940 16,489 8.8% Room 3,756 3,407 10.2% F&B 11,033 10,138 8.8% Holiday Activity & Others 3,151 2,944 7.0% Interest & Othe

  49. Slide 49: Impact of Ind AS 116 – Standalone YTD Dec'19

    Impact of Ind AS 116 – Standalone YTD Dec’ 19 (Rs. in lakhs) Standalone (Unaudited) Nine Month Nine Months ended December 31, 2019 ended December Sl. No Particulars 31,2018 Amount without Amount without Impact of As reported adoption of Ind adoption of Ind Ind AS 116 AS 116 AS 116 1. Profit prior to

  50. Slide 50: Profit & Loss Statement – YTD Dec'19

    Profit & Loss Statement – YTD Dec’ 19 Rs. In Lakhs As reported Without impact of IND AS 116 Particulars YTD Dec’19 * YTD Dec’18 YoY Gr YTD Dec’19 YTD Dec’18 YoY Gr Revenue from Operations 73,633 68,000 8.3% 73,633 68,000 8.3% Non-Operating Income 4,527 3,131 44.6% 4,527 3,131 44.6% Total Income 78,1

  51. Slide 51: Summarized Balance Sheet

    Summarized Balance Sheet Rs. in Lakhs Description As at 31 Dec 2019 As at 31 March 2019 ASSETS Property, Plant & Equipment 2,06,321 2,02,146 Right of Use Asset (IND AS 116) 17,865 - Trade receivables 1,69,803 1,62,091 Cash and cash equivalents (regrouped) 69,417 57,193 Deferred Tax (Net) 43,815 42,5

  52. Slide 52: HCRO We Create and Sell Dream Holidays

    HCRO We Create and Sell Dream Holidays

  53. Slide 53: Key Facts

    Key Facts  Holiday Club Resorts is the largest vacation ownership company in Europe and the leading leisure travel company in Finland  A total of 33 resorts - 25 in Finland, 2 in Sweden, 6 in Spain (5 in Gran Canary, 1 in Costa del Sol)  Mahindra Holidays owns 96.47% of HCR Oy  ~62,000 families

  54. Slide 54: Core Competencies

    Core Competencies  Spa hotel business  Marketing and sales  Resort management  Design of holiday houses and apartments 53

  55. Slide 55: Figures of the Resorts

    Figures of the Resorts Spa Hotels 8 Other Holiday Resorts 25 Hotel Rooms 1,149 Timeshare apartments 1,560 Villas Apartments 600 Restaurants & Bars 44 Aqua Parks with Saunas 8 Spa Treatment Departments 8 Golf Courses 4 Angry Birds Activity Parks 4 Shopping Centre 1 54

  56. Slide 56: Resort Map

    Resort Map Resorts = Apartments Spa hotel ‘apartments 1D Spa hotet + apartments villas. a J ase anny wah © ue aut ud tig alajaly o ni Set, wnat a gee om meagre il ee aad , 55 pp.kk.vwww Aloliday@ Club

  57. Slide 57: Northern lights in winter

    Northern lights in winter 56 https://www.youtube.com/watch?v=Lc3FxNXjBs0

  58. Slide 58: Midnight sun in summer

    Midnight sun in summer 57

  59. Slide 59: Nature - Clean air and thousands of lakes

    Nature - Clean air and thousands of lakes 58

  60. Slide 60: The magical blue moment in winter

    The magical blue moment in winter 59 pp.kk.vvvv

  61. Slide 61: The real Santa lives in Finland

    The real Santa lives in Finland 60

  62. Slide 62: Financial Performance

    Financial Performance 61 Holiday Club

  63. Slide 63: Turnover : Q3 FY 2019-20

    Turnover : Q3 FY 2019-20 Turnover by Business Areas* Euro Mn HCRO Particulars Q3 FY 20 Q3 FY 19 YTD Dec'19 YTD Dec'18 Timeshare 9.81 12.14 30.14 32.81 Spa Hotels 19.15 17.49 53.23 48.69 Renting 2.35 2.05 5.79 5.15 Real Estate Management 1.48 1.47 4.45 4.33 Villas 6.35 8.79 18.81 17.54 Other Sales 0.

  64. Slide 64: P&L FY 2019-2020

    P&L FY 2019-2020 Euro Mn Particulars Q3 FY 20 Q3 FY 19 YTD Dec'19 YTD Dec'18 Turnover 41.03 43.88 118.46 114.41 Operating Profit 1.16 0.90 4.35 0.86 Less: Depreciations and impairments 1.42 1.43 4.32 4.28 (Add)/Less Financial (income) and expenses 0.17 0.33 0.58 0.93 Profit before Tax -0.43 -0.86 -0

  65. Slide 65: COMMENTS Q3 FY19-20

    COMMENTS Q3 FY19-20  HCRO has earned a revenue of 41.03 m€ in Q3 FY 20  SPA Hotel turnover increased by 9% to 19.15 m€ in Q3 FY 20 backed by higher occupancy and increased ARR  Average occupancy stood at 68% in Q3 FY 20 in Spa hotels; up by 3 bps  Increase in renting income by 15% to 2.35 m€ in

  66. Slide 66: Financial Performance- Consolidated

  67. Slide 67: Segment Revenue

    Segment Revenue Rs. In Lakhs Particulars Q3 FY'20 Q3 FY'19 YTD Dec'19 YTD Dec'18 FY 18-19 - MHRIL 26,977 24,903 78,995 72,064 97,635 - HCRO 33,213 36,153 1,00,864 91,839 1,31,269 Total Segment Revenue 60,190 61,056 1,79,859 1,63,903 2,28,904 - Other Unallocable Revenue (215) (225) 113 (2) 662 Revenu

  68. Slide 68: Segment Profitability (PBT)

    Segment Profitability (PBT) Rs. In Lakhs Particulars Q3 FY'20 Q3 FY'19 YTD Dec'19 YTD Dec'18 FY 18-19 - MHRIL 3,670 3,458 9,212 7,512 9,698 - HCRO (563) (792) 240 (3,656) 936 - Total 3,107 2,666 9,452 3,856 10,634 - Ind AS 116 Impact (462) - (1,378) - - Segment Results 2,645 2,666 8,074 3,856 10,634

  69. Slide 69: Impact of Ind AS 116 – Consolidated Q3 FY'20

    Impact of Ind AS 116 – Consolidated Q3 FY’20 (Rs. in lakhs) Consolidated (Unaudited) Quarter ended Quarter ended December 31, 2019 December Sl. No Particulars 31,2018 Amount without Amount without Impact of Ind As reported adoption of Ind adoption of Ind AS 116 AS 116 AS 116 1. Profit prior to Rent,

  70. Slide 70: Impact of Ind AS 116 – Consolidated YTD FY'20

    Impact of Ind AS 116 – Consolidated YTD FY’20 (Rs. in lakhs) Consolidated (Unaudited) Nine Month Nine Months ended December 31, 2019 ended December Sl. No Particulars 31,2018 Amount without Amount without Impact of Ind As reported adoption of Ind adoption of Ind AS 116 AS 116 AS 116 1. Profit prior

  71. Slide 71: Consolidated Profit & Loss Statement

    Consolidated Profit & Loss Statement Rs. In Lakhs Particulars Q3 FY'20 Q3 FY'19 YTD Dec'19 YTD Dec'18 FY 18-19 Income from Operations 58,826 59,881 1,75,526 1,60,440 2,23,899 Non Operating Revenue 1,149 950 4,446 3,461 5,667 Total Income 59,975 60,831 1,79,972 1,63,901 2,29,566 Cost of vacation owne

  72. Slide 72: Thank You

    Thank You

Mahindra Holidays & Resorts India — Q3 FY20 Earnings Presentation on 6ix